After the Motorola Deal is Approved, Can Google Hardware Continue to Dwindle?
Now that Google’s $12.5 billion purchase of Motorola Mobility is set to be approved by federal regulators; speculation is being raised about what the Internet giant will do with its newly acquired assets and just exactly what those assets are. Once the deal is officially approved — an announcement could come next week, according to numerous reports — Google will be in possession of some 17,000 patents to do with mobile phone technology. This will give Google a great position in the mobile industry and can launch its hardware business, which could mean that consumers will soon see Google-brand phones and home systems and devices.
Initially the deal was viewed as a defensive maneuver by Google, amidst an escalating intellectual property arms-race being waged by some of technology’s biggest players, including Microsoft, Samsung and Apple. All of those companies are part of a conglomeration that has agreed to purchase some 6,000 patents from Nortel; a deal the approval of that deal is also expected.
Larry Page, Google CEO stated: “Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies,” when the deal was announced.
The story behind the story here is that Google is entering the hardware market, or at least appears to be and this potential move would represent a radical departure from Google’s main body of services and mode of function. The company has built its base as a software and services business. But according to The Wall Street Journal, Google is preparing to launch a home-entertainment system later this year bearing its own brand.
As the report points out; Google’s new system — which has potential to allow users to control their systems using a smartphone or tablet (or if there is a new device being worked on- fingers crossed- with that)— would bring it even closer into combat with Apple, which is also working to improve on its Apple TV device for the digital living room.
To date, both companies have made efforts in that space that have fallen short, but as the competition heats up, we can expect to see some digital living awesomeness.